ALTEC S.A. presented impressive growth rates and widening in profit margins in H1 2002. Turnover came up to Euro 91.04 million, posting an increase of 37.6% relatively to the first half of 2001, while revenues from the company's international activity increased by 602.3%. The Company's gross profits increased by 114.8% to Euro 20.4 million and with the respective profit margin widening to 22.4% versus 14.4% compared to the last year's corresponding period. EBIT grew over twofold Euro 13.7 million, posting an increase of 178.8%, with a doubling of the profit margin by 15.1% versus 7.5% in the corresponding last year's period. Pretax profits increased by 36.1% reaching Euro 6.4 million versus Euro 4.7 million of the corresponding period of 2001. It is worth noting that this significant increase in profits was achieved despite the period's limited financial income of Euro 350 thous. versus Euro 4.1 million of the last year's corresponding period, signaling the dynamic growth of the Company's operating activity.

The continuation of the Company's profit margins dynamic growth is due mainly to the Company's strategic choice to strengthen its activity in the integrated IT projects sector, services and software, which present a greater profit margin comparable to the products' distribution that constituted the basic activity of the parent company ALTEC before the merger. At the same time, the benefits presented from the reduction of the Company's operating expenses by 49.7% versus the corresponding results of 2001, due to the attainment of significant synergies and economies of scale after the completion of the merger by absorption of the Companies Sysware, Unisoft and Stat, are impressive.

On a consolidated level, turnover reached Euro 101.9 million and EBIT Euro 15.5 million with a profit margin of 15.2%. EBITDA grew to Euro 26.3 million with an increasing profit margin of 25.8%. The Group's pretax profits reached Euro 7.4 million. It is worth noting that H1 2002 results are not comparable to the equivalent year earlier period, since in this year's H1 consolidated data do not include the companies Μ. Levis and Odon & Odostromaton (included in the last years' half), while it is the first time that E- Microland as well as Sysware Bulgaria are included.

The results of the first half constitute the proof of the Company's accurate strategic choices emphasizing the dynamics of ALTEC's new business profile. The quality of H1 2002 financial results reassure the fact that Altec is able to further establish its position in the domestic market as well as to dynamically expand its presence in the international level.